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PetroBakken Energy Ltd. announced their 2013 capital plan with the goal of increasing production by 8 to 12 per cent, with roughly three-quarters of their budget going towards drilling of new wells.

The company reported a successful 2012, which included an acceleration of spending of $100 million of capital, including drilling in the fourth quarter, bringing the year's total to 217 net wells, and completed 234 net wells; the goal was to be able to add production in the first quarter of 2013.

The average production level in December 2012 was 53,200 boe, a six-per-cent increase over December of a year ago; of this, about 21,500 boe was from the Bakken business unit, and 9,200 boe was from southeast Sask. conventional and their Alberta-B.C. business units.

PetroBakken expects the first quarter of 2013 to be the busiest of the year, with 16 drilling rigs operating; of those, six are in southeast Saskatchewan.

About 71 per cent, or $480 million, of their 2013 capital budget will be directed to drilling, completion and tie-in activities, and an additional $140 million being spent on facilities and optimization.

The 2013 capital plan is expected to deliver an average daily production rate of 46,000 to 48,000 barrels of oil equivalent per day, with a goal to exit 2013 with production of 49,000 to 52,000 boe.

The initial capital plan is lower than in recent years, "which we believe to be prudent given the current price volatility and wider light oil differentials being experienced by the industry," said a company statement, adding that the plan may be adjusted accord to prices and costs.

PetroBakken will continue to invest in their assets in the Bakken and in southeast Saskatchewan. The Bakken program will see a balance between facilities and infrastructure spending, with cluster development drilling to maintain strong capital efficiencies.

The drilling program for 2013 plans for 32 new net wells in the Bakken, with $85 million allotted for this, and 16 new net wells in the southeast from their conventional properties, with $27 million allotted.

Meanwhile, Petrobank Energy and Resources Ltd. and PetroBakken Energy announced their previously proposed reorganization was completed on Dec. 31.
Due to the reorganization of the company, Petrobank shareholders will effectively receive Petrobank's holdings in Petro-Bakken while maintaining their interest in Petrobank assets.

The reorganization resulted in a newly incorporated compnay, New Petrobank, acquiring all the assets and liabilities of Petrobank, other than its PetroBakken common shares. Through the reorganization, each share of Petrobank outstanding on the effective date was exchanged for 1.1051 shares of PetroBakken and one share of New Petrobank.

Any trades in New Petrobank shares made after Jan. 2 will not include the right to receive the PetroBakken shares to be distributed pursuant to the reorganization.